GlaxoSmithKline (GSK) and EPIX Pharmaceuticals has announced a worldwide multi-target strategic collaboration to discover, develop and market novel medicines targeting four G-protein coupled receptors (GPCRs) for the treatment of a variety of diseases, including EPIX's novel 5-HT4 partial agonist programme, PRX-03140, in early-stage clinical development for the treatment of Alzheimer's disease.

The alliance with GSK will be conducted through its Centre of Excellence for External Drug Discovery (CEEDD). EPIX will receive total initial payments of $35 million, including $17.5 million through the purchase of 3,009,027 shares of common stock. In addition, EPIX will be eligible to earn potential milestones of up to $1.2 billion based on the achievement of certain discovery, development, regulatory and commercial milestones across the four GPCR programmes.

EPIX will also receive tiered double-digit royalties on sales by GSK of all collaboration-developed product sales. EPIX will be responsible for the discovery and development of small molecule drug candidates targeting four GPCRs, including PRX-03140 for the treatment of Alzheimer's disease, through to clinical proof of concept, at which point GSK will have an exclusive option to license each product for further development and commercialisation on a worldwide basis.

In addition to the upfront payment, EPIX has the opportunity to earn milestone payments upon the achievement of specified development and regulatory milestones in each of the programmes. If GSK exercises the option to license EPIX's 5-HT4 partial agonist programme, EPIX will retain the right to co-promote any products from that programme in the United States.